Purchasing Land to Subdivide – A Few Tips

It seems so simple – buy a large plot of land, split it in two or three plots and sell them for a profit. While it may seem so easy and free of risk, if that were actually the case everyone would be doing it and there would be no large blocks of land to snap up as the owners wouldn’t see the benefits in selling it before subdividing, would they?

Yes, many people turn a tidy profit by purchasing land to subdivide but there are many things that you will need to take into consideration if you’re to succeed at making a profit.

In addition to making great use of the services of Horizon subdivision surveyors, a service that you just can’t do without, you will also need to focus on the following.

Adequate Land Size

Generally speaking, in Australia you need to purchase a block of land that’s at least 700m2 if you’re to subdivide it and adhere to local council regulations. While 700m2 is usually the minimum, you may find that larger plots of land are the requirement in your area, so be sure to investigate this before you start searching for large plots of land to subdivide.

Driveway Space

As you’ll be subdividing the plot into at least two blocks to sell, you must ensure that there will adequate space for a driveway for each property, as sharing a driveway isn’t an option.

Most local councils will insist that there’s enough space between the boundary line and the edge of the house to build a driveway, so you need to make sure that will be the case for both blocks of land. Depending on local council regulations, this space can range in size from 2.5m to 3.5m and it’s a prominent reason for focusing on corner plots, as a layout for two or more blocks with ample driveway space can be implemented. Other considerations include:

  • Landscaping will affect the amount of space required and could require a larger plot of land to subdivide
  • The council may insist that you complete the curb and guttering at your own expense

The expenses involved in having a curb and guttering produced can add up, so be sure to factor this in when looking at plots of land as you may find that it isn’t cost-effective at all.

Level Blocks are Best

When subdividing a property with the aim of making a profit, it’s best to purchase a level block of land to develop as this will require less work and, therefore, less expenditure.

What’s more, level blocks of land are better for small plots as there’s more usable land to build on and develop, so while 300m2 may be the best choice for a level block, you’ll need at least 400m2 for a sloping block of land.

Wherever you’re looking at buying a block of land to subdivide, be sure to have a good idea of what you need to do and always make good use of the services that subdivision surveyors provide.

Leave a Reply